Moscow. 14 November 2005. OAO "Kabardino-Balkaria Hydrogeneration Company" has completed its registration with the Inspectorate of the Federal Tax Service for the city of Nalchik, Republic of Kabardino-Balkaria.

OAO "Kabardino-Balkaria Hydrogeneration Company" was founded by OAO "Kabbalkenergo"* as part of the project to turnaround and restructure OAO "Ingushenergo", OAO "Kabbalkenergo", OAO "Karachaevo-Cherkesskenergo", OAO "Sevkavkazenergo" managed by OAO "Caucasian Energy Management Company".** The decision to establish the Company was taken by the Board of Directors of RAO "UES of Russia" at its meeting held 25 March 2005.

OAO "Kabardino-Balkaria Hydrogeneration Company" will comprise the Baksanskaya HPP, Sovetskaya HPP, and Mukholskaya HPP.

The Board of Directors of the Company includes the following members: Oleg Dunin, Head of the Department for Project Implementation Department of Business Unit No.2, RAO "UES of Russia"; Evgeny Dikov, Head of the Reforming Directorate, OAO "VoGEK Management Company"; Ali Sottayev, Chief Engineer of the Energy Construction Projects Directorate, Director of PP "Kabbalkenergostroy", Director of "Nizhnecherekskie HPPs Cascade", a subsidiary of OAO "Kabbalkenergo"; Olga Gudozhnikova, Chief Specialist of the Strategy Department of the Reform Management Center, OAO RAO "UES of Russia"; and Vladislav Yaroshevich, Advisor of the Professional Directors' Institute Foundation. The Director General of OAO "Kabardino-Balkaria Hydrogeneration Company" is Azik Tokmakov.

The charter capital of the Company is RUB95 million divided into ordinary shares of RUB1 par value.

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